The largest bicycle manufacturer in the world has bought a 60% stake in German bicycle company MIFA for 15 million euros.

India’s Hero Cycles, which has an option to increase its stake in the future, will spend a further four million euros on a restructuring programme.

A statement issued by Hero said: “This is a ‘first of its kind’ partnership in the bicycle market globally, with an Indian company providing its cost-efficient manufacturing base and supply chain to an EU-based company with critical technology and access to the lucrative European market, especially in e-bikes.

“Hero Cycles continues to look at acquisition and partnership opportunities across the globe that fit into our strategy of serving customers across all bike segments and price points.”

MIFA, which has annual revenues of around 100 million euros, focuses on the mass-market bicycle sector.

The company has recently had great success with its Grace e-bikes.